How Not To Be Expensive on About the Cost to Open a Restaurant

published by: Build Your Restaurant-12/27/2016 8:20:32 AM

Cost to start a Restaurant

Restaurants usually start up with a capital budget that is usually got on loan. Even while it difficult to generalize, it is quite common that new restaurant owners are vulnerable to overspend. The typical cost to open a restaurant in the United States, according to a survey, is estimated at $ 275,000 and when the building of the restaurant needs to be owned, the costs could shoot up to $ 425,000. Viewing such high budgets, it is very important for restaurants owners to get their costing right.

Here are few areas where restaurant owners could cut-back on to save their capital funding.

Technology only when it matters

The importance of technology can never be under-estimated.   However, you should understand where is technology most important and where it could be a burden on your budget. If you need to have a successful restaurant, a POS system is mandatory. This is a necessity because your customers need various payment options including card and mobile payment. There are many other places where your technology expenses could be cut down. For the waiters to take orders, you don’t always have to provide an expensive tab or a mobile device.

Tighter Equipment costs:

While starting a new restaurant, the equipment you provide to your staff is very important. That is the machinery that runs your factory that produces food to serve your customers. Providing top-notch equipment will ensure that your restaurant runs smoothly, especially during initial stages. Many restaurant owners though, don’t make the right choices while buying new equipment. In the urge to provide only the best, you might overspend on equipment which is not necessary during the initial stages. Making the right choice in purchasing equipment could help you in cutting back the costs.

Manage your Marketing:

Craving for wider recognition and more visitors, many restaurant owners tend to make the expensive mistake of investing too much on marketing. While marketing your new restaurant is important, you choose the right marketing techniques that would have a good ROI. Choosing digital marketing instead of expensive television advertising could be one of the options. A strong digital presence boosts your sales, spending your marketing budget to boost your digital activity, could be the right option for marketing during initial stages.

Follow Expert Counsel:

Even if you are an expert at the restaurant business or a start up restaurant owner, it is always advisable to take counsel of financial experts while planning the budget cost to open a restaurant. Gerody Murphy’s book ‘Opening a Restaurant from Inception to Reception’ has exclusive chapters on managing the financials of your restaurant. With contributions from international financial experts who have incredible expertise in finances of a restaurant, the book offers incredible first-hand knowledge which you could exploit. You can also use Fobesoft, an incredible software to estimate your restaurant's annual budget. The software, which is the brain - child of the author Geordy Murphy, will help you to prepare highly accurate estimates and avoid over-spending.

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